Express Scripts 2014 Annual Report Download - page 36

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Express Scripts 2014 Annual Report
34
(“ARVCO”).OnNovember19,2014,theCompanyreceivedanothersubpoenarequestingadditionalinformation
relatingtoMedco’sinternalinvestigationofitsbusinessdealingswithARVCOandcertainotherrelatedmatters.The
Companyintendstocooperatewiththeinquiryandisnotabletopredictwithcertaintythetimingoroutcomeofthis
matter.
InvestigationsunderthefederalandmoststateFalseClaimsActsmaybeinitiatedbytheapplicablegovernment
investigativebodyorbyaquitamrelator’sfilingofaFalseClaimsActcomplaintundercourtseal.Ifaquitamrelator’s
complaintremainedunderseal,applicablelawwouldrestrictourabilitytodisclosesuchafact.
Inadditiontotheforegoingmatters,intheordinarycourseofourbusiness,therehavearisenvariouslegal
proceedings,investigationsorclaimsnowpendingagainstusoroursubsidiaries.Theeffectoftheseactionsonfuturefinancial
resultsisnotsubjecttoreasonableestimationbecausetheproceedingsareinearlystagesand/orconsiderableuncertaintyexists
abouttheoutcomes.Whereinsurancecoverageisnotavailableforsuchclaims,orinourjudgment,isnotcost-effective,we
maintainself-insuranceaccrualstoreduceourexposuretofuturelegalcosts,settlementsandjudgmentsrelatedtouninsured
claims.Ourself-insuredaccrualsarebaseduponestimatesoftheaggregateliabilityforthecostsofuninsuredclaimsincurred
andtheretainedportionofinsuredclaimsusingcertainactuarialassumptionsfollowedintheinsuranceindustryandour
experience.Itisnotpossibletopredictwithcertaintytheoutcomeoftheseclaims,andwecangivenoassurancethatanylosses
inexcessofourinsuranceandanyself-insuranceaccrualswillnotbematerial.
30
Item 4 — Mine Safety Disclosures
Notapplicable.